registration document France Telecom 2009 - Orange.com

overview of the group’s business
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OVERVIEW OF BUSINESS
France
■ Voila.fr (8.3 million unique visitors in October 2009) and
Cityvox (the French entertainment and leisure site), with its
different sites: Cityvox.fr, Cinefi l.com, Spectacles.fr, Concert.
fr, and WebCity.fr.
In 2009, Orange upgraded its offer with more specialized sites:
Wormee (a free, on-demand music service), and Tendance
santé (dedicated to health and well-being).
The primary revenue source is on-line advertising sold by the
Orange Advertising Network. This advertising management
department sells advertising space for about ten third-party
sites. After years of growth, the business slid back in 2009,
hard-hit by the economic situation (-6% in 2009, according to
the trade paper Observatoire de la Publicité). Likewise, revenues
from sponsored links of the search engine Voila were down, due
primarily to competition from Google.
Content-Related Activities
The development of the Group’s range of content services on
all of its networks (fi xed-line, mobile, Internet ), in France and
abroad, relies on partnership agreements and rights acquisition
relating to cinema, music, games, sports and information.
France Telecom works to offer the most attractive and the
richest content possible as a result of its association with diverse
partners such as Arte, France Télévisions, Warner and Sony.
To deliver its content services, the Group has implemented a set
of service platforms that include technical protection measures
as well as tools for digital rights management, which ensure
the integrity of the works and compensation for the copyright
holders. France Telecom also participates actively in content
security through its subsidiary, Viaccess.
For more information on the content offer, see the “Contents”
Section of C hapter 6.3.7.3 Shared services .
Carrier Services
Carrier services include interconnection services for competing
operators, regulated by Arcep, and unbundling and wholesale
market services. The growth in business on the wholesale
market partially offsets the decline in interconnection service
revenues.
The fi rst wholesale offers available to alternative operators
(national IP offer, regional bitstream offer, and partial unbundling
offer) required that the end customer also have a telephone
subscription with France Telecom. In 2004, with the growth
in total unbundling, operators were able to start offering
broadband access with no subscription for traditional telephone
services. Since the introduction by France Telecom in 2006 of
a wholesale sales offer for subscriptions to telephone service
and a wholesale offer for naked ADSL, the other operators have
been able to propose offers which include line subscriptions.
Nonetheless, the total unbundling offer remained France
Telecom’s most-subscribed offer in 2009.
Since 2006, naked bitstream has been added to total unbundling
outside unbundled areas to allow alternative operators to extend
their non-subscription broadband offers to the entire territory.
Since then, these accesses have steadily increased.
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Mobile Telephony Activities
Z KEY INDICATORS 2009 2008 2007
Revenues (in b illions of euros) 10.8 10.5 10.0
Total Number of Customers (in millions) 26.3 25.2 24.2
o/w plans 17.9 17.0 15.7
o/w prepaid offers 8.4 8.2 8.5
o/w broadband (3G) 7.6 5.2 2.5
o/w broadband-only (3G dongles) 1.1 0.6 0.3
Number of MVNO Customers 2.4 1.8 1.4
Total ARPU (in euros per year) 394 398 398
Postpaid ARPU 501 517 526
P repaid ARPU 159 163 164
V oice ARPU 292 316 329
D ata ARPU 102 83 69
Total AUPU (in minutes per month) 192 198 198
Churn rates (%) 23.2% 21.7% 19.8%
Source: Orange
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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